Bali business consultants for doing business in Bali & high income business opportunities in bali villa business,bali investment,living in bali,bali business services

We continue to see many persons suffer major losses and inconvenience through MISUNDERSTANDINGS and
“OTHER REASONS” during the formation of their companies. Out of a deep concern for these persons and a genuine
concern for both the image of Bali and the long-term interest of Bali and the Balinese people, we have produced a
“buyers-Guild” that we truly hope may protect people from such losses and in-turn better serve Bali and it’s people.

Due to the very complicated nature of company establishment in Indonesia, the formation and registering of a local
company (PT) or a foreign company (PMA - Foreign Direct Investment Company) is no easy venture. This is due to
the great complexity of the procedures and formalities that must be correctly completed to obtain an approved
company license in Indonesia.

It is because of these same very complex procedures and protocols involved in effecting Indonesian company
formations, that those persons seeking to establish Indonesian companies employ the services of an experienced legal
service provider to effect the formation of their company.

Many government authorizations and approval documents must be awarded and obtained in order to finally be granted
the approved and complete legal company. The local government official (village chief or Kepala kampung) of your
business address (government recorded address) must be approached and they must approve you to operate a
business at that address. Then the district head of the same location must also approve the business proposal, before
we are able progress to local and lower government offices to obtain more approvals.

We then must work through a many number of appropriate Denpasar government offices to obtain the same
approvals and licenses that make up the final company, these include the approved buildings office and the taxation
office and a number of other important government departments. Once the process has been completed in Denpasar
Bali, documents must be sent to Jakarta for further approval and the receiving of more needed authorization
documents including the department of the ministry of justice. At the end of this complicated process the approval and
registered company license, along with the company SIUP Number will be issued and granted.

There are indeed a many number of persons or agents (most unregistered or legal) offering to obtain immigration
visas, company formations and other legal services. The TRICKS being used to abuse their clients trust is at an all-
time HIGH. The complexities of business law and other formalities here make it very easy for such agents to operate.
Please be sure you KNOW what you are GETTING and HOW-MUCH (total) you will be paying for their services.

To reduce the risk of complications, misunderstandings and disappointments we strongly recommend that you only
employ the services of an APPROVED legal service provider, that also is an approved and registered Indonesian
company (please contact us if you are unsure how you can confirm the same). If you are dealing with an unapproved
agent that has NO company license, it would be VERY HARD if not imposable to have your funds returned should
any agreement or contract be breached. We also strongly recommend that you ask for checkable references from
owners of companies they have already successfully formed.

TIPS:

Get a Contract! - Have a detailed contract drawn that clearly defines the service agreement. This should include
details of the service/s being provided and list any tangible items that are also to be provided. A wise move is to also
have the contract state the “total” charges that are payable for the said service/s. Failure to record service charges and
details of the service/s or items to be provided, could result in unexpected charges at a later date.

If you have a contract drawn that reflects any verbal agreements made you stand a much better chance of having all
promises delivered. More-over if for whatever reason the service/s (company formation) cannot be fully completed or
either party violates the terms of the contract, the interests of both parties will be better served should arbitration be
needed.

Size of Company! - Indonesian companies are specifically classed as SMALL, MEDIUM or LARGE companies. The
smaller class of company is easier to produce and requires a lower investment and deposit of funds into the company
bank account during the creation and formation of the company. However SMALL companies CANNOT sponsor or
provide WORKING VISAS (Kitas). It is therefore important to remember that the small-class of local company
cannot legally support or sponsor a foreign worker or investor in Indonesia.

Small company formations are also limited as to what operations they can legally perform. It is therefore vital that you
are clear as to the type of business activities you intend to perform and that the completed business license can
support the same. Failure to accomplish this could later result in the company trading or operating outside of what the
company is permitted to do. This could result in all-manner of legal problems.

Larger company formations are much less restricted and can accommodate foreign worker or investment, but must
also have important categories contained within their permitted operations. Such approved authorizations must meet
the specifics of your main business, for example IMPORTAING, EXPORTING, MANUFACTURING or TOURISUM.

Company Registration in Bali! – All Indonesian companies must be registered in Jakarta, however a Bali based
business or company must also complete a further registration process in Bali, failure to complete this process and
obtain these extra local licenses means that the company cannot legally trade or operate within Bali.


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